How To

It is necessary to add the opening balance transaction as a normal
transaction to tally the debit and credit sides of the accounts. Because
of double entry accounting you need debit and credit transaction, so even the
opening balance should have two entries. If you have 1000$ cash balance investment
that mean you have 1000$ equity.

You can add a debit opening balance to an account by debiting the
relevant account and crediting a relevant account.

Example 1: to add opening cash balance

Debit the Cash account by the amount

Credit the equity account by the amount

Example2: To add opening balance of
debtors

Debit the Debtors account (Mr. ABC) by the amount

Credit the purchase (PC Parts) account by the amount

You can add a credit opening balance to an account by crediting the
relevant account and debiting a relevant account.